Malaysia’s Manufacturing PMI Falls to 49.5 in October, Lowest in Four Months — S&P Global

Malaysia’s manufacturing sector weakened further in October, with the S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) slipping to 49.5 from 49.8 in September — the lowest in four months. The reading below the 50.0 threshold indicates continued moderation in business conditions.

S&P Global Market Intelligence economist Usamah Bhatti said the latest data signalled challenging operating conditions at the start of the fourth quarter. Firms reported renewed declines in new orders and production, alongside slower employment and inventory growth. A sharper fall in new export orders, particularly from Asia-Pacific and Africa, also weighed on overall demand.

Manufacturing PMI Falls

Input cost inflation rose slightly but remained modest. To stimulate sales, manufacturers lowered output charges for the first time in six months, absorbing higher costs.

Despite these headwinds, business confidence improved markedly. Optimism over the year-ahead outlook hit its highest level since April 2023, driven by expectations of stronger future demand.

S&P Global noted that, despite the softening PMI, historical data correlations suggest Malaysia’s GDP and manufacturing output continued to grow at a solid annual pace entering the final quarter of 2025.

Business News